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WHEN AND HOW TO PULL THE CORD ON AN OVERPRICED LISTING?

By
Real Estate Agent with COLDWELL BANKER RESIDENTIAL BROKERAGE

I try not to get caught in this trap but too many times lately I have gone against my better judgment and spent so much time and energy trying to make deals work that were loaded with red flags and flashing yellow signs when I first took them.

My latest attempt was accepting a listing on a beautiful 5 bedroom/4 bath colonial sited on 3 acres surrounded by wooded preserve land. The owners had expanded the house to include a glass-walled In-Law Suite (complete with its own full kitchen) on the lower level. ABSOLUTELY GORGEOUS!!

So what's the problem you ask - if you were to pick that house up and move it half mile down the road it would double in value. But the house had been over improved for its location and, to complicate matters, the owners refused to accept that fact. So OK I take the listing thinking that it is such a beautiful home that I might be able to find a buyer who falls in love with it and, by some miracle, find an appraiser that will put on heavily tinted rose colored glasses and appraise it close enough to the selling price so I can make the deal.

So here I am 5 weeks later with no offers and the showings have slowed to a trickle. I know what the problem is - the home is overpriced - and I am kicking myself for not listening to that inner voice that we all have, but too often ignore, that said "DON'T TAKE THIS LISTING".

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Phil Hillerman
Crye-Leike Realtors® - Rogers, AR
Crye-Leike Realtors®

Now you have to fight the "Drop the price war".  Either the price goes down or you need to find another listing that will sell.  Good Luck!

May 20, 2011 02:17 PM
Jeanne M. Gavish
Jeanne Gavish, Keller Williams Realty Elite Partners - Spring Hill, FL
Keller Williams Realty Elite Partners - CIPS,GRI,S

Gloria, we have all done it at some point, and I blame it on the market.  "Well, I gave it my best shot, but THE MARKET has clearly not accepted your price and so if you want to sell....."

May 20, 2011 02:20 PM
Tim Riddle
Tim Riddle Broker Associate,Marsha Hardin Real Estate - Azle, TX
SFR,TAHS, Azle ,Fort Worth Real Estate

Gloria    Jeanne is right we have all taken a listing that was over priced and then been stuck trying to convince the owners they need to lower the price. Show the owners expired and sold listings, called the expireds " failures " and the solds "success's"  Askt the owner which column he wants his house in,, Sometimes they see things different,  Not always but sometimes

 

good luck

May 20, 2011 02:32 PM
Bill Pohl
Tetra Homes, Inc. - Loveland, OH

Gloria - You have to listen to your professional side. The time to drop the listing is before you take the listing.

May 20, 2011 02:35 PM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Gloria, you need to have that awkward but necessary "come to Jesus" meeting with your Sellers.

As Jeanne said, if you need a Bad Guy, blame it on the market.

The sooner you drop either the price (substantially), or walk away from the Listing, the better it will be for both you and the Seller.

Best wishes.

May 20, 2011 06:34 PM
Gloria Laughton Allston
COLDWELL BANKER RESIDENTIAL BROKERAGE - Princeton, NJ
Realtor(NJ)/Broker(NY)

Yeah Phil and I really dislike following the market and playing the "drop the price"game but you are right.

Thanks Jeanne for letting me know that I am not alone and I have a fall back position.

Good idea Tim - most people want to identify with the "success" side.

Bill I know - if only I had listened to that inner voice I would not be in this position.

OH Fred - knowing these sellers that is a meeting that will not be pretty but you are right saying that it has to happen. STAY TUNED!

May 21, 2011 01:31 AM
Michele Myers
Prudential Homesale Services Group - Harrisburg, PA
Harrisburg/Hershey Realtor

I think we all have been in this situation, and getting a price reduction can be very difficult with some sellers.  Good luck!

May 21, 2011 01:38 PM
Gloria Laughton Allston
COLDWELL BANKER RESIDENTIAL BROKERAGE - Princeton, NJ
Realtor(NJ)/Broker(NY)

Thanks Michele - one of the things I like about AR is that fellow agents understand and support each other.

May 23, 2011 02:01 AM
Suzanne McLaughlin
Sabinske & Associates, Inc. (Albertville, St. Michael) - Saint Michael, MN
Sabinske & Associates, Realtor

Sometimes, we fall in love with the listing along with the owners and ignore our brains and think with our hearts which might be called positive thinking, but is actually overreaching our better sense.  I hope that you can find those "someones" soon!

Jun 06, 2014 12:13 AM
Roy Kelley
Retired - Gaithersburg, MD

 This is a good story to share. Taking an over priced listing can provide an expensive lesson.

Feb 16, 2015 07:32 PM
Larry Lawfer
YourStories Realty Group - Newton, MA
"I listen for a living." It's all about you.

Sometimes I think the old rules of real estate don't always apply. I think Buyers are looking on the internet to find the home and only bring an agent in after the fact. With that thinking I would promote and market this property as a greater value than half a mile down the road.  Get more for less kind of thing.  Location is so important and I don't have particulars, so I know I am just flapping my gums here. I do think marketing matters and can help even over priced listings. Best of luck

Mar 30, 2015 08:31 PM
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Gloria Laughton Allston ~ just to chime in late here, we want to listen to our inner voice, but just as much we want to listen to the sellers point of view, too... At one point you need to go back to the seller and explain the home is just not priced right.. Then it is up to the seller to make the next move

Apr 26, 2015 08:00 AM
Bruce Walter
Keller Williams Realty Lafayette/West Lafayette, Indiana - West Lafayette, IN

Gloria, it is just a tough situation and especially when the owners have overbuilt for the neighborhood.   You have a very tough conversation coming up trying to get the necessary price reduction to market value, or in moving on with the listing.  Hope it works out for the best for everyone!

May 16, 2015 05:17 AM